After losing over RM 42,238.60 in less than an hour to as low as RM 177,402.30 early Saturday, Bitcoin gradually returned to the RM 206,969.30 mark throughout the weekend. The sharp drop was caused by the omicron coronavirus variant, which frightened financial markets throughout the world.
Saturday’s precipitous dip in bitcoin’s largest since a 24-hour loss from above RM 181,631.10 to under RM 135,167.30, a roughly 27 % decrease. According to statistics, the trading volume of about $20 billion on Saturday across 11 major centralized exchanges reached record levels, but by Sunday, the volume had decreased drastically as investors awaited the opening of traditional markets.
Bitcoin (BTC)- However, unlike in the midst of the May plunge, investors have decided to buy bitcoin this time. Following the pullback, many even, notably El Salvador, stated that they had grabbed “the dip.” Based on the most recent statistics, bitcoin was trading at RM 207,731.80, up 0.2 % in the previous 24 hours. Ether was trading at RM 17,543.20, up 1.4 %.
On Saturday, other cryptocurrencies plummeted precipitously as well. Nevertheless, several of these cryptocurrencies, headed by ether, have shown to be more resilient than bitcoin. Ether’s price has fallen by 3.7 % in the last week, compared to 14.6 % for bitcoin. It is impossible to forecast how cryptos will perform in the next few days.
Bitcoin dips below RM 236,556.20 as momentum weakens, with support around RM 223,883.50. Bitcoin (BTC) sellers were active the day before the major sell-off early Saturday, bringing the cryptocurrency to the bottom of its weekly price range. The recent downturn might be stabilized if support at around RM 223,883.50 is found.
On the daily and weekly price charts, positive momentum was beginning to weaken, implying that gains might be restricted to the RM 253,445.80 barrier level. Given the upward sloping 100-day moving average, the intermediate-term uptrend stays intact for the time being. In addition, the chart’s relative strength index (RSI) remained slightly below the neutral zone, despite weak buying after an oversold level on Nov. 26.
Ethereum (ETH)- The price of Ethereum regains nearly all of its post-crash loss, easily beating the overall market. Since May, the price of Ethereum has witnessed one of the quickest and deepest precipitous falls. The crash could not have come at a better time: midnight Eastern Standard Time (New York). Before a positive turnaround, bears might bring Etheruem to the RM 14,797.00 price level.
While the short-term outlook is quite bright, there is still a lot of uncertainty and danger on the downside. Given the substantial rebound, the price of Ethereum remains within the daily Cloud – a zone packed with market volatility, fluctuation, and market swings. The Cloud is also where trading accounts explode. To enter a full-fledged bull market, Etheruem must close at or above RM 19,641.00 on a daily basis.
The price of Ethereum is more bearish here, with the Chikou Span below the candlesticks and in open space. The bear flag breakthrough on the Relative Strength Index (RSI) adds to the bearish outlook. The last oversold level in the RSI around 40, though, may provide some support.
The price range that bears should surpass to turn Ethereum price into a bear market is far more controllable than the price range that bulls must accomplish to turn Ethereum price into a bull market. Short-sellers only need a 7% move below RM 16,895.50 to turn Ethereum into a bear market, whilst long-sellers only need a 15% gain above RM 16,895.50 to turn Ethereum into a bull market. Any daily closing of RM 15,628.30 or below will put Ethereum below the Cloud and into the bear market zone.
Furthermore, ether was positioned to outperform bitcoin on a relative basis if a breakout above 0.08 in the ETH/BTC ratio is verified next week. During the 2018 crypto bad market, charts still indicate considerable resistance, which preceded downturns in ETH/BTC.
When equities markets reopen on Monday, it will be interesting to see how all of this plays out as the omicron variant of the COVID-19 virus spreads throughout the world.
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